What is the Amazon Born to Run Program?

In this article, eCommerce Nurse shares more information about the Amazon Born to Run program.

Cue the strumming! No, sadly, we’re not here to talk about Bruce Springsteen’s infectiously catchy 80s hit. Instead, we’re going to tell you everything you need to know about Amazon’s Born to Run vendor program.

Let me set the scene: you're about to host an epic gathering for your nearest and dearest. The anticipation is building, and with it comes the need for a major shopping spree to secure all the party essentials. You'll undoubtedly load up on the hottest items, even though the final guest count is still a mystery.

Well, the Amazon Born to Run program is set up to work in a similar way.

In normal circumstances, vendors must demonstrate a remarkable sales momentum in order to convince Amazon to replenish their inventory. The Born to Run program circumnavigates that by providing vendors with the opportunity to prompt Amazon to order stock up-front without the sales numbers to back them up. However, there is a caveat: the agreement is completely on Amazon’s terms (more on this later).

Essentially, Amazon Born to Run is an opportunity for vendors to maximize the momentum of the sale of new products or promotional ASINs without the associated out-of-stock risk.

Let's take a closer look at the details.

How Does the Amazon Born to Run Program Work?

According to Amazon, Born to Run ‘allows you to request orders for a product by telling Amazon how many units of that product you expect to sell through in 10 weeks. Amazon will review your request and – if approved – will buy up to that amount."

Invited vendors can choose the amount of extra stock they’d like Amazon to order, known as the Launch Buy Quantity. The kicker is vendors also need to agree that Amazon can return all unsold stock after the 10-week sell-through period (which starts 20 days from your Born to Run submission date).

If you’ve drastically over-ordered and are facing a return of the unsold stock, these are the options available to you:

1. Amazon will return the goods, and you must refund 100% of the product cost of the returned units plus a 10% charge for the cost of the unsold units to cover shipping and handling.
2. Amazon will keep the unsold units, and you must pay a retention fee equal to 25% of the cost of the unsold units for Amazon to continue to hold the stock.

As you can see, there are obvious pros and cons to entering into this agreement.

Eligibility Requirements for Amazon's Born to Run Offering

Who can join the Amazon Born to Run program, you might ask? Well, here are some of the main eligibility requirements:

• Participants need to be first-party sellers and members of the Amazon Vendor program.
• The total value of the Launch Buy Quantity can't exceed $50,000.
• The cost of the ASIN enlisted must be at least $5.
• The enrolled product can't be heavy, bulky, or regulated as dangerous goods.

At this time, the Born to Run Amazon program is an invite-only opportunity. Amazon applies unknown criteria to determine who receives these golden tickets, stating:

We impose certain operational, profitability, and other requirements and checks which we continually iterate on in order to ensure that Born to Run provides the optimal vendor experience and outcomes for us.

How frustratingly opaque. If you're invited to this exclusive soiree, it’s also worth noting that you can’t create a brand-new ASIN for the program. All ASINs submitted have to be created and approved prior to submission.

How Many Units Should I Order?

If you need help forecasting, here are some tips from Amazon:

If it's a product launch: You can gain valuable insights into the future demand for a comparable product that you're already selling by utilizing Amazon Brand Analytics (ABA). Or, you can assess your off-Amazon demand, if applicable.

If you’re launching a promotion: Take a closer look at the product forecast using ABA and tweak it according to your own expectations.

If you’re anticipating seasonal trends: If you anticipate an increase in demand because of upcoming advertising campaigns, consider incorporating the expected sales boost into your current forecast.

The good news is that you have several opportunities to get your numbers in the right place.

Is Amazon Born to Run Worth It?

There are a few significant benefits to being selected for Born to Run:

1. Your sales can skyrocket. Designed to facilitate a successful product launch or planned marketing campaign, a large initial order from Amazon Born to Run can boost your sales, reviews, and, consequently, your ranking. According to Vendor Society, pilot tests showed enrolled ASINs attracted almost double the amount of sales as traditional launches. Win-win.
2. Ad spend has been abolished. Back in the day, vendors would be required to spend 10% of the total order value on ads for the associated stock. This prerequisite has been revoked, although Amazon still recommends you run ads to help drive sell-through.
3. There's reduced risk. As Amazon is ordering sufficient stock from you for your launch, you’re unlikely to face a dreaded stockout. By lessening the out-of-stock risk (and other associated negative repercussions), you can maximize your sales potential from the start.
4. Your relationship with Amazon could improve. If your first foray goes well and your product sells like hotcakes, it will help demonstrate to Amazon that your product is worth investing in and could lay the groundwork for a fruitful, ongoing partnership.
   

Ready to Run?

Whether you’ve been invited to enroll in Amazon Born to Run and need more guidance, or you’re simply trying to navigate Amazon and its complex canopies, get in touch.

eCommerce Nurse is a full-service agency formed of ex-Amazonians and Amazon specialists ready to help you at every stage of your Amazon journey.